welcome to the kaiser report max kaiser oh my god but i do no longer access bitcoin all acknowledge china bandspread could how will we survive treat the mainstream media well in fact baidu the e bay of china and the longer it was but calling but it was only ever one of by these many subsidiaries which is the bitcoin and that was for one samsung product for several weeks and those weeks only one point three seven bit cleaner ever sent to buy do look here this is their wallet see that six hundred twenty seven point eight three pounds. john also announced

a ban on financial firms transacting in bitcoin the government will treat but coined not as a currency but as a commodity. and as such individuals and companies are free to set up and going exchanges and transact in bitcoin the government warns soever that they are on their own to try to move as much of that work as you went out of the country as they possibly can imagine that the government will not take on the risks of individuals and corporations how indeed will we serve low lives to see that yes max well when this announcement came from china of course the price of between did plummet quite a bit on the exchanges and but it's now back up again but i want to look at that headline for a moment china bans financial companies from bitcoin transactions so the central banks that the public however was free to transact in them they just wouldn't allow the banks there to transact and this got a lot of attention but at the same time which went completely unnoticed other than by c m b c in this article here because being recognised by germany as private

money bitcoin is not classified as imani or foreign currency the finance ministry said in a statement but is rather a financial instrument under german banking rules it is more akin to private money that can be used in multilateral clearing circles the ministry said this is quite remarkable of course because of the importance and significance of germany in europe and we should have competition in the production of money i have long been a proponent of frederick august on hikes came to denationalize money because our first step in this direction said frank schaffner a member of the german parliament's finance committee who has pushed for a legal classification of bickley bitcoin as a commodity yes that's true that's what we've been saying all along it's a precious number just like gold is a precious metal and you have monetary metals like gold that are used as money and over thousands of years as we enter the next. period of our life here on planet

earth humans will switch from the monetary metal of gold to the monetary number numeral is ation of bitcoin which is a precious number there are twenty one million of these precious numbers to be mined in total and they are the monetary new numeric city that will carry us into the twenty first century so china is correct and the chinese people are correct if they ever want to preserve their wealth they have gold silver and bitcoin to do so now back to the story about germany accepting it as private money so c.b.c. went on to interview kathleen brooks a research director at fork's dot com and she told c.m. b c i think it is interesting that germany has gone ahead and given legal status to the bitcoin as it could become an alternative to the euro if the single currency ever ceased to exist if the euro does go belly up the german authorities could potentially still collect tax if everyone started using bitcoin that's a good example of german forward thinking well the germans appreciate the engineering behind but gone the germans appreciate that the i.m.f.

is bankrupt and that if the euro were ever to encounter some existential crisis the i.m.f. is not going to bail out the euro but bitcoin could potentially bail out the euro and they talk about bitcoin being able to extinguish debt this is generally the terms used by the austrian school of economics that talk about gold as the only debt extinguisher that is worthy of the name and now we have bitcoin so the only thing we don't have is the majority of the austrian economic school adopting or accepting bitcoin for what it is and we are but they will they will fall like dominoes one by one they will all come over to the side of the debate in a city group also this past week while the world's media was paying attention to the china story citi group also said that reserve managers may be starting to look at bitcoin as well and that it would be better actually than the s.t.r. for example you know jim rickards theory that will fold over all of the global debt . into an s.t.r. well this could be better he said because this no individual currency is just of

the representative nation states is a separate currency on its own like the s.t.r. was originally designed to be a trade currency well he said this citigroup analyst said that it wouldn't be something that reserve managers would move into first but their incentive is not to be the last and if they start looking at bitcoin then it would be put the u.s. dollar in jeopardy you know right it does it will it will kill the u.s. dollar that's without question the question is will it replace the special drawing right term in terms of settling international debt obligations as the currency crisis and currency wars continue i think jim record so you mentioned you wrote the book currency wars going it's not on his radar he doesn't understand that this is actually a superior mechanism for a currency war enabler then the special drawing rights his to his money of the i.m.f. that he talks about as being the go to currency as you have a recalibration of the global currency grid i think he's going to be wrong i think

because he's going to be the go to currency the s.t.r. will end up just being another over leveraged pile of junk that is useless and you know i think gen records will also come over to this way of thinking about actually well i think the interesting thing here is not to look at the price it could be one hundred dollars it could be fifty dollars it could be a thousand dollars or could be five thousand dollars the interesting thing is the debate in that discussion happening and this is only less than four years after it was created less than four years after suppose she nakamoto it's spread this idea out into the world and it's up at the level of federal reserve bank of the people's bank of china these are discussions happening at that level across a banking analyst now looking at ways that this could be used what it actually means what bitcoin actually means and i'm going to take us through this next headline here this is quite simply the biggest endorsement that big queen has ever received this is according to business insider who are very much against recording previously and now. they're big cheerleaders for it david wu f.x.

and rates strategist at bank of america merrill lynch said we believe bitcoin can become a major means of payment for e-commerce and may emerge as a serious competitor to traditional money transfer providers as a medium of exchange between has clear potential for growth and our view and with that he provides this chart which compares it to western union as you see blue is the western union and red is big and if you notice western union income was down twenty percent in the third quarter this year when they had to reduce their rate their transfer fees well david. a maryland bank of america clearly copying my work i mean is almost quoting me verbatim he's making a reference to silver which i done already and his price target is thirteen hundred dollars for a bit coin that's my price target was recently raised to fifteen and then seven hundred dollars based on ron paul's endorsement bitcoin so merrill lynch is trying to get into the max kaiser business why don't i don't be smirched him for doing so

it's a great business to be and that's why so many t.v. shows make this show so many investment banks mimic what we do that's why business insider is not going totally around to do what we do all the time henry blodget now mimics joe wiesenthal mimics us pretty much where the market and get going around the world and that's the way should be because our track record our history go back to all currencies ok well we were the first talking about it for two years but let's look at exactly what he says what the quote is from david wu regarding what the valuation of between a why he thinks it should be worth thirteen hundred dollars and why it could be worth more in the future and this is where he references something that you've brought up here on the kaiser report quite a while ago our fair value analysis suggests that to justify the current bitcoin valuation it will need to one account for at least ten percent of all global e-commerce b. to see transactions business to consumers to become one of the top three players in the money transfer industry and three acquire a a store. you reputation close to silver so this is where you come in max this is

what you were comparing it to silver right now to ten billion dollar value ation silver is that about twenty billion now you know it's a straight rip off of everything i've said everything we've said on the show and the wall street game is to come up with a target thirteen hundred dollars in this case from merrill lynch bank of america they then will raise that target according to their they want to become the x. as it's called on wall street when the top analyst on the street corner an institutional investor or some other you know reputable or reputable you know analysis will look at one or two firms that are the price maker market maker that merrill lynch wants to be the biggest player in this i don't blame them of course ok well you also brought up ron paul so let's talk about what ron paul said everybody knows that ron paul said ron paul because he could destroy the dollar we know that he said that but there was an interesting point made in the articles talking about him saying this and i want to call upon that even economists who embrace the power of central banks like university of michigan professor miles

kimball recognize the currency's potential bitcoin really shows governments are behind the curve campbell said it demonstrates there's a demand for an outlet tronic equivalent of cash so here we are in this new era where the people wanted something it was not provided by the too big to fail banks who were merged and connected and wrapped around government they protect each other's monopoly the banks protect the government monopoly the government protects the banks monopoly they were not willing to provide the services that the consumer demanded the people demanded and a globalized world the people themselves came up with this currency which is much better than anything that the governments themselves have imposed upon us and we see that based on their response that they're actually issuing white papers themselves about what bitcoin is. what it could be well if this is the first

virtual currency a crypto currency that made it through the government gate keepers keep in mind that this goes back almost twenty years now when virtual currencies were first invented thanks to my technologies so this is the crypto currency has made it through the government gatekeepers but they'll come after like they came after files sharing and napster and aaron swartz and all the the folks who are there to take it down but it will triumph especially when bitcoin marries a pirate bay and therefore the m.p.a. the are i am going to go finally out of completely out of business and this is really a fight that i've been fighting for twenty years so it's great to see this chapter now is a winning chapter well you know many people argue against bitcoin saying well you have to pay your taxes we did see a police chief in kentucky recently start accepting his payment in big coin but first the town is paying his federal and state local taxes and then paying him bitcoin the rest that he then doesn't owe us dollar taxes and but finally i want to

look at this final bit about this the future of what these digital currencies and crypto currencies hold for us because it is hardly the first attempt at a digital currency that operates outside of state boundaries e-bay is pay pal plans to launch a digital interplanetary payment system there's also growing support for a concept called seasteading floating cities on international waters where business and innovation aren't held back by laws starting as a national application for bitcoin create your own sovereign so you can pay tax to your taxes are ok pay whatever you think makes sense but any current government tax demands are ludicrous because they support a military that's out of control and does nothing good for anybody ok well we're out of time john mcdonogh time to time to go ok i have to go get some of those intergalactic currency units because i'm heading to andromeda galaxy later makes sense to do the second a lot more. i

would rather ask questions to people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on our t.v. question for. i

play as street cleaner. in love with a waitress i go on stage and imagine that there's an audience i used to take drugs and drink like a fish. the middle east told me about the circus but i was such a punk i was like what circus. or circus of clearly guns. and would break down stereotypes about kids from

disadvantaged. welcome back to the kaiser report imax keyser time out of turn to dr kristen lott hosts c f o of the university of nicosia. cyprus crystal's welcome to the kaiser report thank you very much an honor to be in the true right fantastic now your university is the first in the world to accept big coin. what tell us about. actually the initiative because he's an educational conglomerate and i would say because at the university of is a conglomerate it's a quite limited because we have apart from the university we have a punishing so just who is you know london we have a medical school in the we have a just because of cypress with our students eight thousand five hundred students

and i look at it with how many companies are all over europe and to host us here only programs promote of the world and you're the c.f.o. chief financial officer and you recognize an opportunity in bitcoin is just part of what happened when there was a bail and going back to earlier this year remember there was a huge bell and there was a confiscation of people's bank accounts is this what the bell rang and suddenly became something to do actually has nothing to do with the bailout and the crises we have in this having requests from all over they were from students enough asia even the medica what university courses from their own countries and especially for almost you know from the bunk that he just well there was who wanted to pay us and be coining in the last couple of months so we didn't see sure we studied and we came up with a conclusion that would be excellent payment method for the students cheaper less.

safe. and that we decided to adopt because each term into the twenty years old the current. payment. through fuel comes ok and you also offer degree is encrypt oh currencies correct in actually said must be a cut and sees how the us is will affect businesses regularly they respond could us account times lawyers met chance. it's not actually a course in could total a fee it's of course about the public at large and that business is not large how we have money off it every day life this is what we want to study in these months of program ok now one of the questions people have about using big klein in a practical sense is the large volatility is a price movement from in hundreds of dollars in a day as a c.f.o. a chief financial officer of a major university what are your thoughts there is that

a problem or how do you address that yeah actually a bit queen us or other codices can be used by that of us a mutual exchange or to start over us an investment i say would eventually we would be using that between us if full exchange it's a mix in the form of change as a store of value if you dismiss concerns we would not be out there taking in the risks that these we would be accepting between as a full payment for them to yourself if they do for example it is true from kenya was to pay one thousand euros and on the point of payment the two hundred euros two it would be quaint he would send us over five points and immediately we convert it to one thousand iu the rate is five hundred he was in a bit due to be coins and he needed to get it to one total you write your universe they might use a service like bit pay for example and they can convert any currency a using the big point of the transfer mechanism and then into the local currency really in the same transaction you're taking no currency risk whatsoever no and that's interesting point now if you have students coming from kenya and you're and

countries where the capita per resident is very very low if. are using big coin which is a much cheaper way to send money and use money is it is it is it make a difference in terms of now suddenly there are more people who can get an education because of the cost effectiveness of a bit coin in other words is having an effect on the the number of people now can actually seek an education due to the cost savings from a big point yeah actually we are launching this special scholarship program for students in poor countries is called uni cuff you assumed. front that we would be offering special school shoes to students from poor countries and also give them the push you need to pay through between which would make their studies even. more attractive bright so here's another use of bitcoin was as far as i know has never been discussed it's lowering the barrier to entry for higher education

for millions of people due to its cost efficiencies and this of course will then mean a lot more educational opportunities all over the world and as your university in cyprus i take it would be the first to do this that anywhere in the world but the more would follow i would think yes i. believe that the behind all of these two would be attention is the fact that you have pointed out. it's funny you should have and will make education more attractive to push students all over the world at least twenty four of the truck to up on beaches. right now let's talk about cyprus because bitcoin was trending higher over a number of years and people were looking at this thing as a curiosity more than anything else and then suddenly there were the huge crisis in cyprus that price spikes from forty to to sixty and people realize that way this is a really a way for folks that are being abused by the banking system to preserve their wealth to escape the abuse of the banking system you were in cyprus at the time

what was the feeling on the street was was was it really because from the outside we have the in price. that it was spread like wildfire suddenly bit coin emerges and it was talked about immensely is that true or what was really going on actually at that time back in march and april of this year when we had the bailey and the people. in the streets didn't really know about be coins. that was happening don't be quite of the time or so mainly from the queen or some the community outside cyprus or only a few people knew about doubled between and i believe that. the price increase of them caught in the press would be queen of what i'm not to cyprus i'm sorry ok so more and more activity really outside of cyprus and then inside cyprus itself but nevertheless it did kickstart

a tremendous move from they double digits to the triple digits and now they quadruple digits when you said earlier that it's both a means of payment and also store of value let's talk about the store value for a second because some are estimating that you could look at a bit coin as you would a precious stone like a diamond and it could be worth a million dollars perfect going even hugh hendry who's a respected hedge fund manager here in london recently has said that bid going to be worth a million dollars per bitcoin ron paul famous politician in america has come out recently and said that he thinks that bitcoin is the killer of the u.s. dollar and we'll get to that for in a second but what do you think about this idea that the price could trade up to you know a million dollars per bitcoin can you talk a little bit about that yeah i said hit us a university doesn't it usually we want to see the study about because you know about the advantages and so on and so forth and we have decided to accept it as

a means of exchange we are not taking any position as a university about the potential or. value i have of course my own personal. people know about but what is your personal opinion about that i believe that the idea. of for be clean to become. pope a story of worth but that's my personal opinion ok let's circle back then to this question about what ron paul was saying recently ron paul i think he's a pretty well known politician around the world really because he's been out front in criticizing the federal reserve bank of america which is analogous to the european central bank and the european central bank of course has a direct impact on what happens in cyprus and other peripheral countries such as grace and these central banks whether it's the bank of england or bank of japan they're all really coordinating under the master central bank the bank of international settlements in switzerland and ron paul has been critical of this entire central bank centralized monetary authority that seems to favor one element

society that is those who have access to money at zero percent interest rates for speculation while it penalizing workers and savers but the linchpin of this entire global central bank system is the u.s. dollar as a reserve currency as a c.f.o. of a major university and your thoughts on can the u.s. dollar continue this role as world reserve currency. and is it good or is it bad and can bitcoin challenge that role. i think that is a lot of. the world that you have outlined right now i believe that. the dollar will continue to say that all of its pain cut and lee but it will have to face to face a lot of challenge from b. clinton i kind of sure you ok so basically what i'm getting so far is that you are

very happy that bitcoin is unable your university to get more students at a better price and expedite the whole educational process and that's the main emphasis behind supporting because that's true however we have much more. concerns we want through these problems of the bumi to the types governments chukotka cyprus hop it was for between trade. processing and biking and we have made this specific proposal for the government us to how we can achieve that you know once a country we don't have to look export what we did this we have to resume of private universities but we don't really export anything however we have a once in a lifetime opportunity with bitcoin to convert the she could economy into a hopf for what trading pay pay and systems banking based on because let me get this straight so you're saying that you are petitioning the government to allow for

cyprus to become a global hub of bitcoin activity as as and take the lead position so while other countries are thinking about it and trying to examine it like the us or the u.k. they're not sure exactly what it is and there's a lot of lobbying efforts from the banking industry really against it because it's competition cypresses now you're lobbying the government take a position this is a once in a lifetime opportunity we want to be a world leader and we want the business were open for business for a bit going is that the message i phrased that's it we want to me it makes cyprus this central there went to sort of be clean trading process you know but he's got some we have about a minute left can you disk. some of those initiatives. if for example the government coming to a public statement could be seen as out of it what kind of cyprus. being traded in the. cyprus though the change it would be the first the big going to be traded on the cyprus stock exchange this is one of hope as well as

a proposal much of now having what i still would change under the auspices of the government having been trading it with the truck trading for a lot of it worked we would. relate it to p.c. this is heaviest being developed we would create thousands of a few jumps. they put into these great like singapore is the asian for banking and london is certainly a hub in europe for banking cyprus could be a big point for the globe in bitcoin trading and related services that's your that's your hope that your thought the government so far we have about twenty seconds the government so far what has been their response. has been. from what china's couple of days and he said they are very positive and they will study the use of any carefully in the next coming days all right fantastic well we wish you luck i think one country will be the big water it could be cyprus could be we wanted to be able to make every a fourth well thanks so much bring on

a guy's report thank you very much and that's going to do it for this edition of the kaiser report with me max geyser and stacey herbert i'd like to thank our guest dr christos loss of the university of nicosia in cyprus if you like to get in touch tweet us at kaiser report until next.

i. think. i would rather ask questions to people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on our t.v. question. i would bet that. a society that case i think corporation kind of continue to consume can do i think the bank try to call them all about money and i'm a fashion except for a politician writing the laws and regulations to attack bankers coming out.

there is just too much. today society. that. welcome to breaking the set i'm abby martin so we're almost on the brink of war with syria yes that seems like just yesterday that obama was about to drop cruise missiles over the basket because assad allegedly crossed the red line just days after the august twenty first serin gas attack killed nearly fifteen hundred syrians the administration released an intelligence brief place in seoul blame on assad of the deadly assault even secretary of state john kerry well aware of the fabrications told by the u.s. to get into iraq assured us that quote we will not repeat that moment we've taken unprecedented steps to declassify and make facts available to people who couldn't.